LPL Financial Holdings Inc. LPLA shares rallied 11.2% in the last trading session to close at $318.88. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.4% loss over the past four weeks.
LPL Financial stock rallied, driven by a substantial jump in the broad markets. The jump was driven by President Donald Trump’s announcement of a 90-day tariff pause for the non-retaliating nations. This cheered the investors, driving the LPLA stock higher.
This company is expected to post quarterly earnings of $4.54 per share in its upcoming report, which represents a year-over-year change of +7.8%. Revenues are expected to be $3.58 billion, up 26.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For LPL Financial, the consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LPLA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
LPL Financial is a member of the Zacks Financial - Investment Bank industry. One other stock in the same industry, BGC Group BGC, finished the last trading session 8.6% higher at $8.47. BGC has returned -8.7% over the past month.
For BGC Group , the consensus EPS estimate for the upcoming report has changed +14.8% over the past month to $0.29. This represents a change of +16% from what the company reported a year ago. BGC Group currently has a Zacks Rank of #1 (Strong Buy).
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This article originally published on Zacks Investment Research (zacks.com).
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